The Companies Act, 2013 pioneered the notion of One Person Company in India for the enterprisers to have the effrontery to start their own venture by allowing them to create a single person economic entity. One Person Company Registration Process India involves certain steps but it is possible too.
Is OPC Company Registration has been accecpted?
Yes, OPC Company Registration Online India is accepted. The better choice between the two will be depending upon individual requirements.
As the name suggests, OPC is a form of a private company with just one person as a Director and Shareholder and it is useful for an individual who is an Indian resident.
One can enjoy the full benefit of company structure with OPC and get itself registered online which is not a tedious task.
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Pros of OPC Company Registration:
- Who it is for
An OPC is for tycoons or magnates who are indubitable that they want to possess absolute control over their business. There can be no other member or director. However, such a business cannot be very large because of the MCA, i.e., the Ministry of Corporate Affairs requires all the OPCs to become LLPs of private limited companies once their revenues cross INR 2 crore.
- Limited liability implying more and better opportunities
Since the liability of the OPC is limited to the extent of the value of the share one holds, the individual could take more risks in business without letting anything affect or suffer any loss of personal assets. It is the buoying up to new, young, and innovative start-ups.
- The only owner
You are the only owner who is helpful in quick decision-making, controlling, and managing the business without following any elongated processes and methodologies as adopted in other companies.
- Mandatory compliances
All the OPCs must preserve their books of accounts, act in accordance with their statutory inspection requirements and conform income tax returns and the yearly filings with the ROC.
Cons of OPC Registration:
- Suitable only for a fairly small form of business since One Person Company Registration can have a maximum authorized capital of INR 50 lacs and it’s turnover when exceeds INR 2 crores needs a compulsory conversion into a private limited.
- It cannot voluntarily be converted to a private limited or public limited until two years of the date of incorporation.
- Limited to only one shareholder, that means one cannot offer part ownership to any other person.
Why Choose OPC?
- Only one member is required
- Unaffected by the death of a member
- Remains unaffected by any change in the ownership status
- Easy to set up and maintain comparatively
- Limits the liabilities of its members
Features of an OPC:
- Formed with a single person
- Based on the concept of shares
- OPC can be converted into a private in future
- Compliances would be the same as a normal private limited
- The tax structure is the same as that of a private limited
- The appointment of an auditor is mandatory